Reflection on Economic History: What is the purpose of capitalist production in economic activities?

2022-05-07 0 By

Reflection on Economic History: What is the purpose of capitalist production in economic activities?In order to achieve a sustained and rapid development of socialist production so as to better meet the needs of society and gradually and universally raise the material and cultural living standards of the working people, it is necessary to gradually increase accumulation.Because accumulation is the source of expanded reproduction.This requires workers in the material production sector to create more surplus products and provide more profits.Therefore, socialist enterprises must provide profits consistent with the purpose of socialist production.Socialist enterprises must, in their production and operation, practice strict economic accounting, stress economic results and strive to keep their individual labor consumption lower than socially necessary labor consumption and gain more profits.To this end, we must ensure and improve the quality of our products.Because use value is the material bearer of value.What has no use value has no value.Without a certain product quality, it will not have the value of the same product.Without social use value, value can not be realized.In short, in the process of realizing the value of a product, its quality must be inspected by the user or the consumer.Engels said as early as 1844: value is the relation between production cost and utility.Later, in the Anti-Turin Treatise, he reiterated: “In determining the question of production, the above-mentioned measures of utility and Labour costs are all that the concept of value of political economy has left in a communist society, as I said in 1844.”It can be seen that value itself includes the social evaluation and measurement of product effectiveness.In this sense, creating more value is exactly the same as producing more and better use value to meet social needs.To sum up, it can be seen that the value of surplus products produced by socialist material production departments and enterprises and their monetary performance — the amount of profit — have the function of comprehensively reflecting the quality of the work of this department and enterprise, that is, profit is the comprehensive performance of the economic activities of all production departments and enterprises.Under normal circumstances, the more socialist profits a department or enterprise creates and realizes and the greater its contribution to the country and society, it indicates that it has done well in production and operation and has made remarkable achievements in its work.Conversely, the opposite is true.In the past, some people absurdly opposed value to use value, and indiscriminately regarded “production for value and production for profit” as the main symbol of the degeneration of socialist enterprises and their leaders.In socialist Political Economy, which they organized and compiled, they argued that under socialism, because of the commodity system, there existed “economic conditions for production for value and production for profit.””Such economic conditions constantly tempt the managers of enterprises and economic sectors away from the socialist purpose of production and onto the road of production for value and profit., a department of an enterprise once on the road, what, how to produce, and how to exchange products, is controlled by the law of law of value and profit, the production of the enterprise is in fact not in accordance with the principle of capitalism according to the principles in the socialism, the socialist enterprises have actually been in metamorphic off.”Whether an enterprise’s production and operation should follow socialist or capitalist principles does not depend on whether the enterprise produces for the use of value and not for profit, or “for value” or “for profit”.According to Lenin in his commentary on Bukharin (Economy in Transition), the fundamental symbol is who owns the profits of the enterprise.To be owned by capitalists means to act in accordance with capitalist principles.To be owned by all the working people and to serve the interests of the working people is to uphold the socialist principles.Socialist enterprises grasp the profits in the production and operation, not only is not a “capitalist road establishment in the party” form the objective basis, on the contrary, being able to create more profits for the society, makes the material basis for the socialist society has more and more fully, make the working class has more powerful material force to defeat capitalism and the bourgeoisie.Socialist profits are those socialist enterprises obtain by making their production output exceed production consumption in accordance with the plans approved by the State and in compliance with state economic policies, financial disciplines and laws and regulations.If a socialist enterprise wants to make profits, it can only do so by constantly adopting new technologies, improving and enhancing its management level, raising labor productivity and reducing costs.To do so fully conforms to the requirements of socialist economic laws.The more such profits are captured, the more rapid development of socialist production can be ensured.If an enterprise fails to carry out the national plan, carry out the contract, comply with the national economic policy, financial discipline and regulations, the variety is not in the right way, and the quality is not good, under normal circumstances, it will be difficult to realize the value of its products and make profits, and will be subject to economic sanctions.If an enterprise goes against the socialist direction and pursues profits through speculation and profiteering, such profits will not belong to socialist profits. In addition, enterprises that make profits through unfair means often have all kinds of malpractices at the same time, so that the profits cannot really belong to the working people, but are pocketed by others.In assessing the work of a socialist enterprise (such as an industrial enterprise owned by the whole people), we should carry out a comprehensive assessment.You can’t treat all eight equally.Because socialist profit has a relatively comprehensive reflection of the business results of the enterprise, including whether the product variety of the enterprise is right, whether the quality is good or not, whether the labor productivity is high or low function, so it is a comprehensive index, through which can show the economic effect of the enterprise.Of course, it should also be noted that because our planned price is relatively stable, it is difficult to accurately reflect the changes in social labor consumption of products at any time. Different enterprises have different production and operation conditions, so for enterprises, it is often beneficial to the division of large and small products.In order to ensure the planned and proportional development of the entire socialist production, it is necessary for the state to make the production of enterprises better comply with the requirements of the state plan through the assessment of the output, varieties, quality and other indicators of use value.On the premise of the implementation of the national production plan, profit is nothing but profit, which can comprehensively show the production and operation effect of an enterprise.Affirming profit is the comprehensive performance of socialist enterprise’s production and management condition, but it does not solve the problem of assessing enterprise’s economic effect.Because the enterprise has big small, useful advanced technology equipment up, also have mechanization level is not high.Only the absolute amount of profits can not judge the quality of enterprise work.If a large enterprise is equipped with advanced technology and enjoys relatively high profits, this does not mean that the enterprise is doing well in production and operation.A small enterprise with a low level of mechanization will make less profit, which does not mean that the enterprise is not doing well in production and operation.Only the relative amount of profit, the level of profit or the rate of profit, can become the criterion of judgment.Therefore, there is a long-debated problem in economic circles, that is, whether to use the profit rate of wages, cost (output value) profit rate or capital profit rate to measure the effect of enterprise management.In our view, only profit margin on capital is the correct criterion.In socialist society, the profit rate of capital should be taken as the standard to evaluate the production and management status of socialist enterprises (and thus production departments), which is mainly determined by the material conditions of production, especially the degree of material technology and equipment, and the increasingly important role of science and technology in production.The production efficiency of human labor is determined not only by the subjective conditions of production, that is, human factors, but also by the objective conditions of production, especially the degree of material technology and equipment.In modern large-scale production, the degree of material technology equipment of laborers basically determines the level of laborer production efficiency.To sum up Marx said in the analysis of capitalist production: “As the inherent attribute of capital, the labor productivity of the society is reflected in the fixed capital;The so-called productive forces of Labour in society are, first of all, the forces of science, then the forces of society united within the process of production, and finally the art of transfer from direct Labour to machinery, to dead productive forces.”Removing the attribute of capital, the content of this paragraph applies to socialist society.The meaning is clear. Fixed assets, mainly the material and technological equipment therein, can serve as the material embodiment of social productive forces.